BPO



Love this graph. It's over the past 10 years, monthly period. This is a derivation of the S&P 500 chart, but much delayed.


Notice we are at resistance. The $8.00 point IS significant. It may test this for a month or 2, though, in early 2007, it only had 2 months at this. This is the 2nd month. Often when we see strong moves in ANY direction, we can see some major pullback.


Truly, this would be really nice to have double tops.


Volume: The prior 4 months we had rising price action and declining volume, which signals losing strength in price action and a resistance is close. We can see where the resistance is on this chart.


RSI: RSI resistance is around 87, based upon the most recent as it's in overbought territory. This last peak is around 80. If we take the peak in RSI at 2007 and the most recent, the trend is DOWN. Price action is going up at those same points. So, if you have a downtrend in RSI and an uptrend in Price Action, that is called BEARISH DIVERGENCE.


MACD: Shows bullish strength, which is the opposite of the rest of the signals.





RSI vs. Price Action shows bearish divergence on this more micro scale. We are at the 20 EMA, however, looking at the big picture, it would not be unreasonable for it to drop to $4.00, which is where the 200 EMA is.


Volume is showing more bearishness in strength than bullishness, though, there are more bullish days.


MACD is looking more bearish.


The ONLY bullish position I would actually take is if it closes strongly above $8.00, otherwise, a bearish position makes more sense.
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